A few months ago, we predicted the supply of Madison area property listings would be low this year, and so far in 2022 the market has proven our prediction to be true.
Take Dane County homes, for example:
Through the first 7 months of the year, single family home listings have been entering the market at the slowest pace since the year 2000.
And Dane County condos:
Condominium listings have been entering the market at the slowest pace since 2002.
The thing is, real estate is likely to be a scarce resource for a long time.
And it all comes down to simple supply and demand.
Supply will remain low because home and condo construction is subdued, foreclosures are relatively rare, and homeowners with low mortgage rates are reluctant to sell now that interest rates are higher.
At the same time, demand will remain strong because Dane County's reputation and population keep growing, as the millennial generation (America's largest) ages into homeownership.
And so we're left with this conclusion.
And that is that those who own real estate will see their property values rise and their wealth grow over time, while those who aren't able to own (and their future generations) will be missing out. There's no doubt that we, as a community, need to broaden our base of homeownership and help more people experience the wealth that flows from it. Stay tuned for much more on this topic.
